Electoral Systems and the Balance of Consumer-Producer Power. (With Ronald Rogowski, Mark Kayser and Drew Linzer)

Abstract

Investigates the effects of electoral systems on the relative influence of various interests within society. Rogowski and Kayser’s (2002) extension of the classic Stigler-Peltzman model of regulation implies that majoritarian electoral arrangements should empower consumers relative to producers. This manuscript, employing real price levels as a proxy for consumer power, rigorously establishes this proposition over time, within the OECD, and across a large sample of developing countries. Majoritarian electoral arrangements depress real prices by approximately ten percent, all else equal. Additional theoretical implications about institutional reform and electoral competitiveness are also developed.